Bharat Coking Coal Limited

Bharat Coking Coal Limited is the largest coking coal producer in India in Fiscal 2025 in terms of coking coal production, which accounted for 58.50% of the domestic coking coal production in Fiscal 2025. Their primary product is coking coal, with an estimated reserve of approximately 7,910 million tonnes, as of April 1, 2024, making them one of the largest coking coal reserve holder in India. They produce various grades of coking coal, non-coking coal and washed coals for applications primarily in the steel and power industries. Bharat Coking Coal Limited is a wholly-owned subsidiary of Coal India Limited ('CIL') and were conferred with Mini Ratna status in 2014. They were incorporated in 1972 to mine and supply coking coal concentrated in mines located at Jharia, Jharkhand and Raniganj, West Bengal coalfields. They have expanded the operations significantly over the years, with the coal production increasing from 30.51 million tonnes in Fiscal 2022 to 40.50 million tonnes in Fiscal 2025. Further, the coal production was 15.75 million tonnes in the six months period ended 30.09.25, as compared to the coal production in six months period ended 30.09.24, which was 19.09 million tonnes. Company operates across a total leasehold area of 288.31 square kilometers, covering 252.88 square kilometers of the Jharia coalfield and covering 35.43 square kilometers of the Raniganj coalfield. Their operational portfolio includes (i) opencast and underground mining projects, (ii) coal washeries; (iii) monetisation of old and idle coal washeries through the Washery Developer and Operator ('WDO') route; and (iv) restoration of operations in discontinued underground mines through the Mine Developer and Operator ('MDO') model. As of September 30, 2025, company operates a network of 34 operational mines, including 4 underground mines, 26 opencast mines, and 4 mixed mines. As of September 30, 2025, they operated five coal washeries with the objective of reducing ash content in coking coal, thereby rendering it suitable for utilization in the steel industries. They are also developing three washeries with a capacity of 7.00 million tonnes per year to bolster the washed coal outputs. As per financial performance, Bharat Coking Coal Limited  has posted total income / net profits of Rs 13,018.57 Cr / Rs 664.78 Cr (FY23), Rs 14,652.53 Cr / Rs 1,564.46 Cr (FY24), Rs 14,401.63 Cr / 1,240.19 Cr (FY25) and Rs 6,311.51 Cr / 123.88 Cr (upto Q2 FY26). So as per previous financials data, company has shown steady results. Company has an average EPS of Rs 2.69 and average RoNW of 25.02% for last three fiscals. Issue is priced at a P/BV of 1.84 as per NAV of Rs 12.52/- as on 30.09.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around 6.85, 8.64, 17.41 and 43.22 respectively. As per RHP, there is no listed peers in the Indian market. On BRLM's front, IDBI Capital Markets & Securities Limited, ICICI Securities Limited are associated with this IPO, and has handled 74 IPOs in last three fiscal years. ( As on 05.01.26 ) As per financials, Bharat Coking Coal Limited has shown steady growth, RoNW is 20.83% and P/E is 6.85, 8.64, 17.41 and 43.22 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks fully priced. Company is the largest coking coal producer in India in Fiscal 2025. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Coal India Limited